Case Law Details
Saurav Kumar Vs Union of India (Patna High Court)
Introduction: In a recent judgment, the Patna High Court addressed the issue of GST registration cancellation in the case of Saurav Kumar Son of Sanjay Kumar Tiwari Resident of Fultakiya Kesariya Vs Union of India through the Secretary. This case sheds light on the importance of timely compliance with statutory requirements and the consequences of failing to do so.
Detailed Analysis: The petitioner faced cancellation of GST registration and sought relief from the High Court. The crux of the case revolved around the petitioner’s failure to file an appeal within the stipulated timeframe as per Section 107 of the Bihar Goods and Services Tax Act, 2017 (BGST Act), which allows for an appeal within three months from the date of the order, with an additional one-month window for delay condonation under satisfactory conditions.
The petitioner’s appeal was filed significantly beyond the permissible period, demonstrating a lack of diligence in adhering to statutory deadlines. The High Court emphasized that the legal system favors those who are diligent and not those who are indolent. Furthermore, the Court highlighted an Amnesty Scheme introduced by the government, which the petitioner failed to utilize, that allowed for the restoration of canceled registrations upon the payment of all dues.
The reason for the cancellation, as stated in the show-cause notice, was the non-filing of returns for a continuous period of six months. The petitioner did not contest the receipt of the show-cause notice nor the fact that returns had not been filed as required. This lack of compliance with fundamental tax obligations underscored the justification for the registration’s cancellation.
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